TrackPower, Inc.
OTC Bulletin Board : TPWR

TrackPower, Inc.

November 01, 2007 10:56 ET

TrackPower Inc. Announces Strategic Restructuring

TORONTO, ONTARIO--(Marketwire - Nov. 1, 2007) - TrackPower Inc. (OTCBB:TPWR) Chairman and CEO John Simmonds is pleased to announce the strategic restructuring of the Company. This shift is aimed at deploying management's significant experience in North American horseracing operations and development into the Latin American marketplace. The restructuring will position TrackPower as a comprehensive service provider and advisory organization to racing and wagering interests, with a specific focus on the growing Latin American market.

"After a thorough examination of the horseracing and gaming landscape in Latin America we have identified a number of areas in which management's experience can be leveraged to capitalize on substantial growth and development opportunities," states Mr. Simmonds. "The opportunity to contribute to the further growth of horseracing in a region that is truly passionate about the sport is very exciting."

TrackPower brings together decades of operations, management, development and technological experience within the horseracing industry. The company is uniquely positioning itself to offer a broad range of products and services to the growing Latin American marketplace.

The horseracing industry in Latin America faces many of the same challenges as previously seen in the North American industry, including aging infrastructure, outdated technology, and limited distribution of the racing product. In an environment of increased political and economic stability, coupled with an influx of foreign investment, the horseracing industry is able to derive strong organic growth that can be greatly bolstered by the implementation of a North American operation and distribution model.

To accommodate this growth, new investment in facilities and technology are required. TrackPower aims to be the premiere solutions provider for Jockey clubs across Latin America throughout this process.

Mr. Simmonds notes that while management has been working on this new strategy for some time, he asserts that the company's position in American Racing and Entertainment LLC, and the recent news concerning the New York State taxation issues with video lottery terminal (VLT) takeout, makes restructuring a prudent next step. "We have stayed the course, waiting on a decision on the VLT tax in New York. Given the recent news that the VLT tax structure is not changing in the near term, it is time to seek out opportunities elsewhere."

About TrackPower Inc.

To date, TrackPower has focused on acquiring interest in horseracing and gaming facilities. It holds approximately a 5.4% membership interest in American Racing and Entertainment, LLC, which operates in the horseracing, resort, and gaming industry in New York. The company was founded in 1987 and is currently based in New York, New York.

This release includes projections of future results and "forward-looking statements" as that term is defined in Sections 27A of the Securities Act of 1933 as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934 as amended (the "Exchange Act"). All statements that are included in this release, other than statements of historical fact, are forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the expectations are disclosed in this release, including, without limitation, in conjunction with those forward-looking statements contained in this release.

Contact Information

  • TrackPower Inc.
    John Simmonds
    Chairman and CEO
    (905) 833-9845 ext. 223
    TrackPower Inc.
    Michael Connell
    (905) 833-9845 ext. 225